Do you know how to STRANGLE stocks with options? Suppose, the market is expecting a big announcement. Something like the interest rate change by the FED or a sudden bankruptcy of a big investment bank or a corporation. This announcement is going to move the market big. You want to profit from this big move in the market that is going to take place. But you don’t know in which direction the market will move. Will the market like the announcement or will be react in a negative manner. You are not sure. Don’t worry. You can still STRANGLE the market with this options trading strategy. STRANGLE is an options trading strategy that only needs a big move in the market no matter what the direction. A straddle is a combination position that involves purchasing a call and a put on the same underlying stock. You use the straddle strategy…

February 23rd, 2010
Money maker
Posted in
